KILL THE PROPERTY TAX
Sponsored by TEXAND Corporation
The tax man, he doth cometh, A ha’penny for the king. If ye have naught to giveth, The deed to yer hovel bring. (Anon)
In a 2016 binding arbitration case between John T. Thorngren and the Denton County Appraisal District, certain practices involving property appraisals and property taxes became apparent that are a patent violation of the U.S. Constitutional rights of certain classes of citizens. One of the purposes of this website is to gather information on these violations, specifically for an eventual civil rights suit against the state of Texas under section 1983 of the long-forgotten Civil Rights act of 1889 and confiscation of property without due process of law under the Bill of Rights, Fifth Amendment.
#ELIMINATE PROPERTY TAX
If you belong to FaceBook, enter #EleminatePropertyTax. This is a great orginization dedicated to contacting our congress to eliminate the feudal property tax system. Please join and support. NO RELIEF NO REFORM # ELIMINATE PROPERTY TAX
THE AMERICAN DREAM You can not own property in the United States of America. You can not buy it. You may only rent it from your county and city bureaucrats in the form of a property tax. And the rate is high and the penalty for non-payment is severe. You miss your rental payment and you are evicted for tax foreclosure. You lose everything you have invested in “owning” your property. The rental payment will surprise you. As an example, you purchase a nice home in Denton, Texas in 2000 for $ 175,000. The tax rate in Denton has been more or less stable since then at 2.5 % of the appraised value. Sounds good, nice low rental rate of only 2.5 % of your purchase price. Wrong! It is 2.5 % of your appraised value, that which mysteriously appreciates every year even though the paint is peeling, the concrete cracking and the walls settling. But to the rescue, the state says you can NOT increase the appraisal by more than 10 % per year. Oh, such bureaucratic generosity, why in just 17 years, you have only paid out in rent: (Purchase $)(Tax Rate)[1.0 – (1.10)^17]/[1.0-(1.10)] And in this case, in 17 years you will have paid the locals your entire purchase price of $ 175K in property taxes. If you live there for 34 years without loosing your home to tax foreclosure, will you pay twice your purchase price (2 x 17)? No, it is not linear. By then, you will have paid over a Million Dollars in property taxes on your original investment of $ 175K. If we add in inflation at 3.5 % per year, the picture becomes even more dismal. It should be clear that AN ASSET TAX IS AN INFLATIONARY TAX Another grievous example of a property tax is the inventory tax. A merchant has his inventory taxed at a certain time every year. The merchant employs sophisticated software to keep his inventory at a minimum. What happens? Trucks run up-and-down the highway day and night adding inflation costs and a huge carbon foot print.
THE THORNGREN PLAN A protest without a plan is like a wagon without a wheel. The current method of taxing property is highly subjective; it is based on manmade evaluations for the property’s value. The operative term in “subjective” is “subject”, i.e. it is subject to error, fraud, cronyism, collusion, graft, persecution of the property owner and a whole Pandora’s Box of other unethical and criminal matters. To eliminate these ills, it is proposed that the property tax, like all other taxes (sales, income, etc.) should be based upon income and profit rather than asset value. Profit for IRS purposes is difficult to hide and manipulate, certainly not subjective. We propose: 1. An annual property tax on commercial property would be based upon net income earned by the owner of the property. (Gross income less expenses excluding interest and depreciation). Note that location and subsequent higher taxes are inherently built into this tax. The inventory tax would be eliminated. 2. For owner-occupied commercial property, this tax would be based upon net income earned by the owner but at a higher rate than that in Item # 1. 3. Homestead property earns no income. It should not be taxed. Why should Joe Midclass retire on $ 2,000/mo Social Security and have his paid-off shack stolen from him through tax foreclosure because the property around him has appreciated? 4. A property tax on homesteads, however, should be paid by the seller based upon its net gain when sold, net gain: the sales price less purchase price less improvements of record. This equitably handles appreciation. It is envisioned that if this money were on a time payout, said tax would also be on a time payout. 5. Vacant land earns no income. It too should not be taxed except when sold based upon the net gain per Item # 4. 6. Commercial property could also be taxed when sold based upon net gain per Item # 4. This is a zero-tolerance property tax — no exemptions. There is nothing emblazoned in the heavens dictating cities to grow, that they must create jobs by giving discriminatory tax abatements to sports arenas, hotels, developers, etc. What jobs are truly created? More city services to handle an increased level of crime, pollution, poor roads, congestion and urban sprawl? But, of course, we do get an increase in city functionaries and their salaries. If a city can’t grow on the basis of offering its denizens a good quality of life, then tough noogies. John T. Thorngren, President TEXAND Corporation Your thoughts and help are graciously requested: e-mail Me This sight under construction Last revision: 12/3/2018